The Republicans’ domestic policy legislation will most likely raise after-tax incomes of the richest Americans while its cuts to social spending will leave the poorest at a substantial disadvantage, according to an analysis released on Monday by the nonpartisan Congressional Budget Office.
The report also estimated that millions of low-income Americans could lose access to federal food assistance or Medicaid under the sweeping bill that President Trump signed into law last month.
This highly regressive pattern — both cutting the safety net for the poor and reducing taxes for the rich — has no precedent among large budget bills passed in the last 40 years.
The budget office’s report was an update to an earlier analysis it had issued in June. It looked at how the bill’s long list of policies would affect Americans at every level of income, estimating that the incomes for the highest 10 percent of earners would rise by an average of 2.7 percent by 2034, mainly driven by tax cuts, while those of the lowest 10 percent would fall by 3.1 percent, mostly because of cuts to programs such as Medicaid and food aid.
The gains for the top 10 percent of earners would be higher than for any other income group, relative to their income, and the bottom 10 percent would face the biggest relative losses, the analysis suggested.
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The post Richest Gain Most and Poorest Face Steepest Cuts Under G.O.P. Law, Analysis Finds appeared first on New York Times.
